Aoxing Pharmaceutical Company Announces Second Quarter Fiscal 2012 Financial and Operational Results
(firmenpresse) - JERSEY CITY, NJ -- (Marketwire) -- 02/14/12 -- Aoxing Pharmaceutical Company, Inc. (NYSE Amex: AXN) ("Aoxing Pharma"), a specialty pharmaceutical company focusing on research, development, manufacturing, and distribution of narcotic, pain-management, and addiction treatment pharmaceuticals, today announced its financial and operational results for its second fiscal quarter, which ended on December 31, 2011.
Revenues for the quarter ended December 31, 2011 were $2,124,333, representing a 9.5% increase over the revenues of $1,940,539 realized during second quarter of the last fiscal year. In the recent quarter, foreign currency translation added 3.1% to sales growth. Sales of the Company's main product, Zhongtongan, increased significantly from the same period in 2010, mainly due to an increase in the number of hospital customers.
For the six months ended December 31, 2011, revenues were $3,654,401, a 0.7% decrease from revenues of $3,681,212 realized during the same period in 2010. Sales of Zhongtongan still increased modestly from the same period in 2010, but the increase was more than offset by the decline in sales of other products. Since the beginning of 2011, the Company has reduced promotional efforts on certain lower margin, non-proprietary products.
For the quarter ended December 31, 2011, gross margin was 60.3%, essentially unchanged from the gross margin of 60.0% realized during the same period a year earlier. For the six months ended December 31, 2011, gross margin was 58.8%, 2.3% higher than the gross margin of 56.5% for the same period a year earlier. Recent positive factors for gross margin include decreased sales of low margin products and an overall enhancement of manufacturing efficiency. Negative pressures mainly came from higher raw material costs.
General and administrative expenses were $764,568 during the quarter ended December 31, 2011, 49.4% lower than $1,510,140 incurred in the same period a year earlier. For the six months ended December 31, 2011, general and administrative expenses were $1,510,811, 37.5% lower than $2,419,196 incurred during the six months a year earlier. The main reason for the decrease was bad debt expense. Company's effort to reduce costs was another importance factor. Bad debt expenses of $457,352 were recorded for the three months ended December 31, 2010, but none for the same period a year later.
On December 5, 2011, the Company received a term loan of $3,124,902 from Shijiazhuang Construction Investment Group, disbursed through China Construction Bank. The note matures in one year and carries an annual interest rate of 15%.
The Company has almost completed the analysis of the Phase III clinical trial of Tongjingshule (TJSL) and has been preparing the materials to file an NDA for the indication of Primary Dysmenorrha ("PD"), or menstrual pain, in adult women. The company intends to submit the application in the next few weeks. The Phase III trial was conducted under the protocol approved by the China SFDA. TJSL is a capsule form of selected herbal medicine. The market for healthcare products to address menstrual pain is estimated at $3 billion per year in China.
, our Chairman and CEO, commented, "The year 2011 was a challenging one for many pharmaceutical companies in China. I am pleased with our operating results in the latest quarter. Our overall sales increased despite reduced promotion on certain unprofitable products. We look forward to continued success in the years ahead."
Aoxing Pharmaceutical Company, Inc. is a US incorporated specialty pharmaceutical company with its operations in China, specializing in research, development, manufacturing and distribution of a variety of narcotics and pain-management products. Headquartered in Shijiazhuang City, outside Beijing, Aoxing has the largest and most advanced manufacturing facility in China for highly regulated narcotic medicines. Its facility is one of the few GMP facilities licensed for the manufacture of narcotic medicines by the China State Food and Drug Administration (SFDA). It has a joint venture collaboration with Johnson Matthey Plc to produce and market narcotics and neurological drugs in China. It also has strategic alliance partnerships with QRxPharma, and Phoenix PharmaLabs, Inc. For more information, please visit: .
Certain statements made in this press release are forward-looking and are made pursuant to the safe harbor provisions of the Securities Litigation Reform Act of 1995. Such statements involve risks and uncertainties that may cause actual results to differ materially from those set forth in these statements. All forward-looking statements included herein are based upon information available to the Company as of the date hereof and, except as is expressly required by the federal securities laws, the Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, changed circumstances or future events or for any other reason. To the extent that any statements made here are not historical, these statements are essentially forward-looking. The Company uses words and phrases such as "guidance," "forecasted," "projects," "is expected," "remain confident," "will" and/or similar expressions to identify forward-looking statements in this press release. Undue reliance should not be placed on forward-looking information. The economic, competitive, governmental, technological and other risk factors identified in the Company's filings with the Securities and Exchange Commission, specifically, Item 1A, "Risk Factors," in the Form 10-K for the year ended June 30, 2011, may cause actual results or events to differ materially from those described in the forward looking statements in this press release. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether because of new information, future events, or otherwise.
Bob Ai
Chief Financial Officer
646-367-1767
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Datum: 14.02.2012 - 16:00 Uhr
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